Spain’s Milk Cartel Cases Highlight Farmer Compensation and Market Power

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Farmers across Spain have until the summer of 2024 to submit claims against processors accused of harming the raw milk market. The Court of Justice of the European Union recently extended deadlines tied to a European directive, following a major truck cartel ruling that reshaped how these cases unfold across member states.

Last Friday, the Eskariam law firm filed appeals in several Spanish courts. It marks the first of six class actions lodged against firms named as part of what is described as a milk cartel. The action, by itself, involves around 7,000 farmers and carries an estimated total demand reaching up to 800 million euros against eight dairy companies and two industry associations that have gained approval from the Competition Commission.

Among the entities cited in the case are Calidad Pascual, Corporación Alimentaria Peñasanta, Danone, Grupo Lactalis Iberia, Nestlé Spain, Puleva, Schreiber Foods Spain, Central Lechera de Galicia (Celega), the Galician Dairy Companies Association, and the Dairy Industries Association. The network also includes Catalonia-based producers, reflecting a wider regional impact on the supply chain.

Agaprol, the largest dairy producers’ association in Spain, has underscored the fundamental issue: farmers deserve financial redress for losses that threaten the long-term viability of a sustainable dairy supply and the food sovereignty of a basic product like milk. This concern has been voiced for years as prices in many segments fail to cover production costs and as the sector endures mounting pressure from market concentrations.

The concerns received additional attention when CNMC officials noted that existing agreements among the companies did not prevent ongoing market tensions. Critics argue that the combination of fragmented farming groups and a powerful processing sector has intensified bargaining power on the buyers’ side, making it difficult for farmers to secure fair prices and stable quotas. These dynamics have fueled debates about how best to balance producer incomes with consumer access to affordable, high-quality dairy products. [Citation: CNMC report; Agaprol statements; Eskariam action]

Analysts say the situation reflects broader European questions about competition, market access, and regional resilience in agriculture. Stakeholders emphasize that timely compensation and structural reforms are essential to safeguard rural livelihoods, support local economies, and maintain the integrity of the dairy value chain. The legal actions also spotlight the ongoing tension between competitive pricing and the sustainability of family farms that have served communities for generations. [Citation: EU market studies; regional producer commentary]

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